Data Centers in New Jersey

New Jersey – Your Low-Latency Financial Hub

New Jersey is the premier colocation market for any business targeting the New York metropolitan area, particularly the financial services sector. Its strategic location offers world-class connectivity and lower operating costs compared to Manhattan, providing a crucial advantage for latency-sensitive applications that drive revenue and mitigate risk. This market delivers exceptional network density and direct cloud access, ensuring high performance and uptime.

New Jersey: At A Glance

Network & Connectivity Ecosystem

New Jersey is one of the most connected data center markets globally, functioning as the primary network backbone for the New York City metro. It offers unparalleled access to domestic and international networks.

Carrier Density & Carrier Neutrality: The state is home to over 108 data centers, with access to approximately 60 unique network providers as of September 2025. This rich ecosystem thrives in carrier-neutral facilities, giving customers complete control over their network and interconnection strategies.

Direct Cloud On-Ramps: With three dedicated cloud on-ramps and access to 13 cloud regions, New Jersey provides excellent private connectivity to major platforms. Direct access is available for AWS, Google Cloud (GCP), Microsoft Azure, and IBM Cloud.

Internet Exchange Points (IXPs): Major peering hubs are located within key data centers in Secaucus, Piscataway, and Newark. These IXPs facilitate efficient, low-latency traffic exchange between networks, which is critical for financial trading and content delivery.

Bare Metal: Bare metal server deployments are readily available from multiple providers. Options from vendors like Hivelocity and phoenixNAP offer dedicated compute resources for workloads requiring maximum performance and security.

Power Analysis

Power infrastructure in New Jersey is well-established, especially in the core data center markets of Bergen, Hudson, and Somerset counties.

Average Cost Of Power: Industrial electricity rates are estimated between $0.12 and $0.15 per kWh as of September 2025. These competitive rates offer a significant operational cost advantage compared to locating directly in New York City.

Power Grid Reliability: The grid supporting major data center corridors is well-engineered, with significant redundancy and support from multiple utility substations. Facilities are built to withstand regional weather events, ensuring high levels of uptime.

Market Access, Business & Tax Climate

New Jersey provides a compelling business case for data center deployments, balancing proximity to a global economic hub with more favorable operating conditions.

Proximity To Key Business Districts: Data centers are strategically located to provide low-latency connectivity to Wall Street and Manhattan's financial districts. This proximity is essential for high-frequency trading, insurance, and media companies.

Regional Market Reach: From New Jersey, organizations can effectively serve the entire Northeast corridor, reaching tens of millions of consumers from Boston to Washington, D.C. with minimal delay.

Tax Advantage For Data Centers: New Jersey offers a targeted tax incentive program for the technology sector. The state provides tax credits tied to significant capital investments and the creation of new full-time jobs, directly reducing the long-term cost of establishing a large-scale data center presence.

Natural Disaster Risk

New Jersey has a High risk profile according to the FEMA National Risk Index, with a score of 75.31 as of September 2025. This score reflects its coastal location and vulnerability to specific weather patterns.

The primary natural hazards driving this assessment include:

• Hurricane
• Winter Storm
• Riverine Flooding
• Severe Wind (including Tornado)
• Lightning
• Hail